HP Imposes 8% Stamp Duty on Corporate Mergers: Minister

Dharamshala, Dec 23 (PTI) The Himachal Pradesh government will fix the rates of sand and gravel and will also charge a stamp duty of 8 per cent on merger of companies or separation of partners of companies, according to an amendment bill passed by the Assembly.

The government will also charge 6 per cent stamp duty on the lease amount on the auction of mining leases. These steps are aimed at raising the resources, said state Revenue Minister Jagat Singh Negi, who introduced the Indian Stamp (Himachal Pradesh second amendment) bill 2023 in the House on Friday.

After discussion on the last day of the winter session, the amendment bill was passed by voice vote.

In response to the discussion on this bill, Negi said that industrial companies merge with each other and the government does not get anything in return. No stamp duty is levied on them, which causes loss to the government.

In such a situation, the government is making a provision to impose an 8 per cent stamp on these companies so that resources can be raised for the government. He said that similarly, the 5 per cent stamp imposed on mining leases has been increased by one per cent.

Earlier, during the discussion on the bill, the opposition leaders raised objections. BJP leader Randhir Sharma said that when the government will stamp the mining lease, it will directly impact the sand and gravel cost which will become expensive.

Leader of Opposition Jairam Thakur said that on one hand the government is trying to woo industrialists from Dubai and on the other hand, it is imposing such conditions for them.

Why would industrialists come to Himachal Pradesh, when even electricity is more expensive than other states, he said and asked what magic does the chief minister has by which he is guaranteeing to make Himachal resourceful in four years.

Bikram Singh (BJP) said that the government is trying to kill the egg-laying hen. No one will invest under such conditions, he added.

MLA Trilok Jamwal also said that if a sick unit merges, the government provides facilities to that unit before that. In such a situation, who will pay the stamp duty during the merger?

On this, Negi said that the sick unit is always merged with a capable company and that company can pay stamp duty. After discussion, this bill was passed in the House with the majority of the ruling party.